copied this from a investment site for samsys.
October 31: SAMSYS TECHNOLOGIES INC.
SIGNIFICANT & UNEXPECTED NEWS
By: Laurel de Yturralde
SAMSys announced yesterday it will be acquiring all shares of Hamel Davidson Corporation (HDIC); the acquisition is expected to be complete by mid-November. HDIC is a private company; Bill Davidson and his wife own all the shares.
Aside from SMY insiders, HDIC - already working for some time with SMY' alliance partners and customers - is likely in the best position to know what SMY' immediate and future prospects may be.
If anyone else deserves to share in the future success of SMY it is Bill Davidson and HDIC. After SMY' President and CEO, Cliff Horwitz identified the need for a universal reader, in order for RFID to move forward globally as the next mainstream ID technology, he took the development challenge to Davidson. HDIC promptly developed the technology allowing SMY to apply for patent protection ahead of any potential competitors.
The stakes in this industry are very high. "RFID is a wireless electronic labeling/data collection system that uses radio frequency signals as a communication medium between tag protocols and readers that identifies and counts closely spaced items without the need to separate or scan individually tagged objects. According to a Frost & Sullivan report the RFID market sector is expected to reach (US)$10 billion by 2004."
Readers will account for a large share of the RFID market and SAMSys appears to be in an enviable position to capture a significant portion of that share.
OPPORTUNITY AND NECESSITY
HINTS OF MORE TO COME
In the announcement Cliff Horwitz, explains the move to acquire HDIC as a necessity: "Our current schedule and the market demand dictates that we now move to this new arrangement." Reached yesterday on business in the US, I asked Mr. Horwitz if he could elaborate on this statement. He replied "We are just plain very busy! The frustration is that we can't talk about what we are busy with; but we have now virtually monopolized HDIC's resources, and it makes no sense to maintain (on either side) the synthetic safety nets which would normally have to be built in to any relationship which can be terminated by either side. We need each other, and don't need to waste time looking over our respective shoulders!"
Additional questions and replies:
*Question: The release states: "This acquisition propels our growth as we move toward commercialization and deployment of our technologies worldwide." Any further elaboration?
**Answer: "The most important issue is that it broadens the base on which we are building the company. We need people - and good people with these skills and familiarity with both SAMSys and the Industry are hard to find. This now frees me to do more etc. etc. - and not have to spend my time in an area in which others are more proficient!"
*Question: Does the price accepted by Hamel say what I think it does? i.e. show tremendous belief in the future of SMY?
**Answer: "Yes it does! Bill and his wife own all the shares."
*Question: Will Davidson receive additional options as an officer of the company?
**Answer: "YES"
*Question: The press release states "Hamel Davidson's principal Mr. Davidson will assume a leadership role as SAMSys's executive vice-president and chief technology officer." What roles will Davidson play in these offices?
**Answer: "As it says in the PR - he will assume all responsibility for technology development and production."
*Question: Will he free some of your time in negotiating details with prospective customers and others involved in implementation?
**Answer: "YES - most definitely. He is already doing this, and has done so for some time now. He is extremely highly regarded by all of our alliance partners and customers."
*Question: What can be said about the manufacturing role this represents? I am just wondering if investors should understand that mass commercialization will likely still be outsourced.
**Answer: "HDIC does have some limited small production facilities; but indeed any bulk will still be outsourced".
*Question: Anything regarding revenues/profits? Will extra overhead acquired be covered in no longer having to pay for Hamel's services?
**Answer: "There should be a marginal positive cash flow impact on SMY; but I don't believe that it is worth focusing on."
*Question: Can we assume upon merging that SMY becomes an ISO-9001 registered company?
**Answer: "Yes, pretty much so."
*Question: Is mid-November closing highly likely?
**Answer: "Yes - no reason why not."
*Comment: Well, that was a total surprise! Congratulations.
**Response: "I'm full of surprises - good ones, I hope!"
AI
